What Are the 3 Best Bargain Artificial Intelligence (AI) Stocks to Buy Right Now?

Key Points

• The S&P 500 bounced back from its massive decline during the first four months of 2025.

• Nvidia, ASML, and Amazon provide diverse opportunities for gaining AI exposure.

• Although they seem richly valued, all three are all trading at discounts to their historical valuations.

• 10 stocks we like better than Nvidia ›

In April when the S&P 500 sunk about 19%, bargain hunters were having a field day. Today, however, the opportunities to find quality artificial intelligence (AI) stocks hanging on the discount rack may seem fewer and farther between.

But that's not to say that they don't exist.

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In fact, today seems like a great time to pick up shares of Nvidia (NASDAQ: NVDA), ASML (NASDAQ: ASML), and Amazon (NASDAQ: AMZN) while they're sitting in the bargain bin.

Image source: Getty Images.

Do this before you decide Nvidia isn't a bargain

Trading today at around 52.5 times operating cash flow, Nvidia stock certainly doesn't seem like it's a value opportunity at first glance. Before making this determination, however, you'd be wise to remember that it's often useful to consider a stock's valuation in context of its historical valuation. In doing so, you'd find Nvidia stock's five-year average cash-flow multiple is 55.1, illustrating its less expensive valuation today.

Similarly, shares of Nvidia seem admittedly higher trading at 53 times trailing earnings, but since they have a five-year average P/E ratio of 70.2, shares seem attractively priced right now.

A semiconductor stalwart, investors would be hard pressed to find a company that supports advancement of the AI industry as much as Nvidia thanks to the graphics processing units it designs for data centers, where AI computing occurs. Additionally, Nvidia has ownership stakes in a variety of AI companies that are driving innovation in a variety of fields including generative AI and healthcare.

You might not know the name, but its AI influence is huge

Unsurprisingly, the production of sophisticated semiconductors that companies rely on to drive AI innovation is far from a simple process. That's where ASML comes in. The company provides hardware, software, and services that help facilitate the mass production of microchips found in AI applications. Most notably, the company provides semiconductor makers with extreme ultraviolet (EUV) lithography systems -- systems that enable the printing of the smallest features on microchips at the highest density. This is an invaluable tool for advanced semiconductor makers such as ASML customers Taiwan Semiconductor Manufacturing and Intel.

It's hard to overstate the allure of ASML with respect to the vital role it plays in helping chipmakers; it's currently the only company worldwide to manufacture EUV lithography systems.

Like with Nvidia, ASML stock's trailing P/E ratio of 33.7 might not shout "bargain," but considering its five-year trailing earnings multiple of 40.8, the current valuation seems more compelling.

Don't be fooled by Amazon's underperformance so far in 2025

Climbing 2.6% since the start of 2025, Amazon stock has failed to keep pace with the S&P 500, which has risen 6.4% as of this writing. With the lack of uncertainty regarding tariffs and how they will impact the company's retail business, investors have chosen to keep their distance -- unlike 2024 when Amazon stock soared more than 44%.

While the stock's lackluster rise in 2025 may be disheartening for current shareholders, it helps to provide a good entry point for prospective investors. Currently, shares are priced 36.7 times trailing earnings -- a hefty discount to their five-year average P/E of 64.1.

From its cloud platform, Amazon Web Services, which supports its customers develop their own AI resources, to the development of AI tools like the virtual assistant Alexa and Amazon Q, an AI assistant used in workplace settings, the company has broad exposure to the AI industry. Plus, there's the numerous ways that Amazon is leveraging AI in everything it owns, making it even clearer that this AI powerhouse has a great opportunity to flourish in the years ahead.

Bargain shoppers have several choices to quench their thirst for AI stocks

While it's always important to focus on the present and look toward the future, taking a peak at the past can also prove to be pretty helpful -- especially with respect to valuing stocks. At first glance, Nvidia, ASML, and Amazon may all seem to sport rich price tags, but, when taking into account their historical valuations, it becomes much clearer how they are all available at a discount right now.

All three companies provide varying opportunities, but Nvidia is arguably the best choice right now for those seeking the most concentrated exposure to the burgeoning field of AI.

Should you invest $1,000 in Nvidia right now?

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Amazon, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.